Deflation in China (Headline), Disinflation in Core Inflation

Would Tricky Ducky prefer Jamie Galbraith to Jeffrey Sachs? Galbraith served as chief technical adviser for macroeconomic reform and strengthening institutions to China’s State Planning Commission.

Galbraith writes: “ China in decline? New US narrative is geared towards 2024 election. The White House and American news media are wringing their hands over China’s economic slowdown, which is construed as posing a threat…

Yes, China’s economy is slowing. It will be hard to scale anything to match the cities and transport networks that are already in place, or the campaign to eliminate extreme poverty. China’s main tasks now lie elsewhere: in education and healthcare, in matching skills to jobs, in providing for the elderly, and in curbing carbon dioxide emissions. They will be pursued in Chinese fashion: step by step, over time.

So, what is the new narrative really about? It is not so much about China as it is about the West. It is about our lead in technologies, our free-market system, and our ability to wield power and to keep all challengers at bay. It is about reinforcing what Westerners like to believe: the inevitable triumph of capitalism and democracy.

Above all, it is about our American leaders winning out against “bad folks” who may do “bad things”. It’s a narrative that’s made-to-measure for the 2024 election campaign.“

What is a foreign affairs narrative really boil down to? Propaganda. And Tricky Ducky swallows (or promotes) it lock, stock and barrel.

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